Cape Town – Cabinet has instructed the Economic Cluster to develop an action plan concerning food prices, food security, and food access.
“Cabinet has approved that the Economic Cluster must put in place an action plan on food prices, food security and access to food,” Minister in the Presidency Khumbudzo Ntshavheni said while briefing the media on Thursday.
Ntshavheni said the Competition Commission has been monitoring essential food prices pursuant to price gouging concerns raised since the declaration of the State of Disaster in March 2020.
The aim is to ensure affordable and accessible essential food items for consumers, she said.
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The Commission has observed a pattern where prices rise quickly but fall slowly, and it has identified the concentrated nature of the food and retail markets as a significant factor.
“The Commission has noted the ‘rocket and feather’ effect, where prices are quick to rise often in excess of cost increases and slow to fall once cost pressures decline. It has also flagged the concentrated nature of the food and retail markets as a concerning contributing factor,” said Ntshavheni.
Cabinet has acknowledged the Commission’s recommendations, including market inquiries to address issues contributing to high food prices and limited competition, she said.
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Compiled by Betha Madhomu
